Quarterly Financial Report for the quarter ended December 31, 2011

1. Introduction

This quarterly financial report has been prepared by the management of the Transportation Appeal Tribunal of Canada "TATC" and Transport Canada as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board Accounting Standard 1.3.  This quarterly report should be read in conjunction with the Main Estimates, Supplementary Estimates and previous quarterly financial reports for the current year.

1.1 Authority, Mandate and Program Activities

A summary description of TATC's program activities can be found in Part II of the Main Estimates.

1.2 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting.  The accompanying Statement of Authorities includes TATC's spending authorities granted by Parliament and those used by the Tribunal consistent with the Main Estimates and Supplementary Estimates (B) for the 2011-2012 fiscal year.  This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before monies can be spent by the Government.  Approvals are given in the form of annually approved limits through appropriation Acts or through legislation in the form of statutory spending authority for specific purposes.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

TATC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process and published in the Departmental Performance Report.  However, the spending authorities voted by Parliament remain on an expenditure basis.

This quarterly report has not been subject to an external audit or review.

2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

These highlights should be read in conjunction with previous quarterly financial reports for the current year.

2.1 Statement of Authorities

The statement attached at the end illustrates authorities used for the quarter as well as authorities used to date for both the current and previous fiscal year. TATC's authorities available for use at the end of the third quarter of 2011-2012 decreased by approximately $16,000 when compared to the same quarter of the previous fiscal year. This is explained by a decrease of the operating expenditures (vote 65) by approximately $22,000, and an increase of the statutory authorities available for use for employee pay benefits by approximately $6,000.

The authorities used during the third quarter of 2011-2012 for program expenditures and statutory items were approximately $17,000 lower than in the same quarter of 2010-2011. This decrease in expenditure is explained under section 2.2 Statement of Departmental Budgetary Expenditures by Standard Object.

This statement also illustrates that the authorities used in the third quarter of 2011-2012, expressed as a percentage of authorities available for the whole year, were lower than in the third quarter of 2010-2011. Approximately 25% of authorities available for use were expended during the third quarter of 2011-2012, whereas 26% were expended in the third quarter of 2010-2011.

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

In the quarter ended December 31st, 2011 total expenditures of the TATC were down by approximately $17,000 when compared with the same period of 2010-2011. This is primarily the result of:

  • Increase in Personnel expenditures by $28,000:
    This variance is explained mainly by an additional term position to assist in the additional workload pressures under the Review and Appeal Hearing's program;
  • Decrease of Transportation and communication expenditures by $16,000:
    This variance is mainly explained by reduced travelling done by the Chairperson to recruit new Tribunal Members;
  • Decrease of Professional services expenditures by $15,000:
    The variance is mainly explained by the reduced use of temporary help services and external legal advice;
  • Decrease of Utilities, materials and supplies expenditures by $9,000:
    The variance is mainly explained by a non recurrent expenditure incurred in the third quarter of 2010-2011 for the reconfiguration of office space.

3. Risks and Uncertainties

Transportation Appeal Tribunal of Canada's Report on Plans and Priorities (RPP) identifies the current risk environment and the Tribunal's key risk areas to the achievement of its strategic outcomes.  Within this context, specific financial risks relative to the third quarter include the following: 

Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-2011 levels for fiscal years 2011-2012 and 2012-2013.  There is a risk that Transportation Appeals Tribunal of Canada's capacity to address emerging financial pressures will decrease as a result of these cost containment measures.  The Transportation Appeal Tribunal of Canada has implemented strategies to manage the operating budget freeze within the Tribunal, including expenditure restraint in discretionary spending and re-allocation of planned spending from lower to higher priorities.

On August 4, 2011 the Government of Canada announced the creation of a new entity called Shared Services Canada (SSC).  This new organization has been established with the prime objective to consolidate and streamline the delivery of email, data centre and network services across the government.  Transportation Appeal Tribunal of Canada is not affected by this initiative.

4. Significant Changes in Relation to Operations, Personnel and Programs

In 2011-2012 the Tribunal's activities remained substantially the same as in the previous year.  However, there is an increase in the number of Review and Appeal Hearings, which can be attributed to the Marine sector.

Approved by:

Original signed by:

­­­­­­­­­­­­­­­­­­­­­­­­­Richard Hall,
Chairperson, TATC
Ottawa, Canada
February 23, 2012

Original signed by:

Deloranda Munro,
Director General, Finance and Administration, Transport Canada
Ottawa, Canada
February 29, 2012

Statement of Authorities (unaudited)

Authorities (in dollars)  Fiscal year 2011-2012
Total available for use for the year ending March 31, 2012 * Used during the quarter ended
December 31, 2011
Year to date (YTD) used at quarter-end
Vote 65 - Operating expenditures 1,642,788 419,397 1,168,432
Budgetary statutory authorities   
Employee Benefit Plan 129,762 32,440 97,321
Total authorities 1,772,550 451,837 1,265,753
Authorities (in dollars)  Fiscal year 2010-2011
Total available for use for the year ended March 31, 2011 * Used  during the quarter ended
December 31, 2010
Year to date (YTD) used  at quarter-end
Vote 65 - Operating expenditures 1,664,362 427,761 1,082,595
Budgetary statutory authorities   
Employee Benefit Plan 123,879 41,292 92,908
Total authorities 1,788,241 469,053 1,175,503

*Includes only Authorities available for use and granted by Parliament at quarter-end.

Departmental Budgetary Expenditures by Standard Object (unaudited)

Expense category
(In dollars)
Fiscal year 2011-2012
Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended December 31, 2011 Year to date used  at quarter-end
Personnel 1,065,866 236,355 652,385
Transportation and communications 152,864 59,333 145,289
Information 33,830 2,442 10,547
Professional and special services 447,316 144,922 423,094
Rentals 30,072 5,477 24,347
Repair and maintenance 7,518 1,091 1,196
Utilities, materials and supplies 35,084 1,261 6,178
Acquisition of machinery and equipment - 956 1,476
Other subsidies and payments - - 1,241
Total gross budgetary expenditures 1,772,550 451,837 1,265,753
Expense category
(In dollars)
Fiscal year 2010-2011
Planned expenditures for the year ending March 31, 2011 Expended during the quarter ended December 31, 2010 Year to date used  at quarter-end
Personnel 1,076,267 208,702 570,631
Transportation and communications 145,172 75,699 135,298
Information 37,871 4,776 20,913
Professional and special services 453,189 159,594 374,546
Rentals 30,297 8,267 19,174
Repair and maintenance 10,099 1,616 2,149
Utilities, materials and supplies 35,346 10,224 18,871
Acquisition of machinery and equipment - - 32,454
Other subsidies and payments - 175 1,467
Total gross budgetary expenditures 1,788,241 469,053 1,175,503